The federal Department of Housing and Urban Development has launched a new investigation into Los Angeles' beleaguered housing authority, officials revealed this week.

The investigation of the Housing Authority of the City of Los Angeles began on Dec. 16, said Gene Gibson, regional public affairs officer for HUD's San Francisco bureau.

It follows an audit released last week by City Controller Wendy Greuel that found a lack of oversight in the agency's travel budget, including double- and triple-billing on meals.

The new investigation is considered unique because HUD officials are working with City Controller Wendy Greuel, according to Gibson.

"The joint audit team will look at HACLA's management, financial operations and compliance with federal regulations," said Gibson, adding the new inquiry was sparked by Greuel's audit.

This HUD investigation of HACLA is different than one performed earlier this year by the federal agency's Office of the Inspector General. Those findings were never published.

HUD's investigation places another uncomfortable spotlight on HACLA, which has a $900 million federally-funded annual budget to provide Section 8 federal housing assistance and other housing aid for thousands of Angelenos.

The agency has been the target of news reports detailing the upscale dining habits and expenditures of HACLA employees.

Earlier this year, KCET reported that employees racked up thousands of dollars in meals at restaurants such as Trader Vic's and Fleming's, while executives spent $4,500 on Lands' End sweaters.

Additionally, HACLA's Board of Commissioners approved a $1.2 million payout for Rudy Montiel, the top executive at the housing authority who was ousted this spring.

But amid the lavish spending reports, defenders questioned whether the agency was simply operating like an effective private company, where expensive perks and bonuses are common and used to boost employee morale.

Additionally, at a hearing before the City Council last week, HACLA's former interim executive director, Ken Simmons, said the funds for questionable expenditures came not from federal funds, but from two nonprofit entities overseen by HACLA.

The two enterprises generate more than $15 million a year, Simmons wrote in a Dec. 13 letter to the City Council.

In his letter, he detailed the nonprofits' work, explaining how the group acts as an administrator processing HUD contracts.

Funds from the nonprofits "enable the Authority to carry out its mission," Simmons wrote. "HACLA receives no city resources and its inadequate funding from the federal government severely limits what this agency can do for its residents."

Greuel's next audit, expected by next spring, will analyze funds and spending by the two nonprofits, Greuel said.

The joint investigation, a first for the city and HUD, points to both "local and national concern," Greuel said.

"The message that's been sent is that this is a serious enough issue for the HUD to come in," she added.

Historically, if federal money is misspent, HUD uses future appropriations as leverage to get repaid.

Meanwhile, the Los Angeles County District Attorney's Office has an open inquiry into three commissioners at HACLA, according to spokeswoman Jane Robison.

She wouldn't comment on when the investigation began, and if the individuals are past or current commissioners.

In the last year, three commissioners have been replaced at the agency.